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The SEC’s patience is running thin with an accounting measure that WeWork, Peloton, and Uber are fond of

WeWork Press Kit - Common Area in Coeur Marais

  • Before its aborted IPO, WeWork’s parent We Co used a measure known as contribution margin to suggest that its core operations were strong and profitable, to the tune of $340 million in the first half of 2019 — even though it had a net loss of $905 million.
  • At a December accounting conference, Patrick Gilmore, a senior SEC accountant, slammed an unnamed subleasing company over its use of contribution margin. The SEC has questioned Peloton about its use of contribution margin, and companies like Uber and Lyft have also featured the measure in their financials.
  • Non-GAAP measures like contribution margin don’t read more >>>

    Source:: BusinessInsider.Com